Entain has reportedly hired another advisory firm to assist its board and capital allocation committee with the possible sale of assets.
As revealed by the Financial Times, the FTSE100 company has hired Wall Street boutique advisory firm Moelis, according to people familiar with the potential sale of the group’s brands.
Moelis will advise Entain’s board and its capital allocation committee on moving on from brands which have not been integrated into the group’s technology platform, which “makes them easier to sell”, according to those familiar with the situation.
According to the FT report, brands which could be sold include the Netherlands-based BetCity, Ladbrokes in Australia, Sweden-based Enlabs and Georgia-based CrystalBet. The sale of such brands would allow Entain to focus on its core UK and German markets, as well as BetMGM, its joint-venture business with MGM Resorts International in the US.
However, Moelis isn’t the only advisory firm guiding Entain on the sale of its assets, as earlier this week, it was reported that the group is exploring the sale of its PartyPoker subsidiary and has enlisted Oakvale Capital to fetch the ‘maximum possible value’ for the asset – a targeted £150m sale.
Entain’s capital allocation committee was formed last November to review the group’s markets, brands and verticals “to help focus the organisation, improve competitive positions in core markets and maximise shareholder value”.
Since then, the group has undergone several changes on a board level, including the departure of Jette Nygaard-Andersen as CEO in December.
Nygaard-Andersen has been replaced by Senior Independent Non-Executive Director Stella David on an interim basis until a permanent CEO replacement has been found.
Commenting on Entain’s recently published 2023 results, David said: “2023 presented a number of challenges for the group, both industry-wide and Entain-specific. I am extremely proud of how our people around the world came together to navigate the business through an eventful and at times difficult year.
“Against that backdrop, Entain was still able to deliver overall revenue growth of 14 per cent including our US joint venture achieving revenue at the top end of expectations.
“We have started the new financial year with a clear plan to accelerate our operational strategy, and are making pleasing progress across a range of initiatives to re-focus our market portfolio, prioritise organic growth, drive our share in the US and expand our margins.
“We are entirely focused on operational excellence and outstanding execution and, as a result, are confident that we are on a pathway to delivering future growth. We remain confident that our continued focused execution will drive organic growth into 2025 and beyond.”
